Search

Northstar Aerospace receives expanded credit facility

Listed: TSX
Symbol: NAS
CHICAGO, ILL, March 9 /CNW/ - (amounts stated in U.S. dollars) Northstar
Aerospace Inc. (TSX:NAS) ("Northstar") announced today that Northstar and its
subsidiaries have entered into a new, expanded credit agreement with JP Morgan
Chase Bank, N.A. and Fifth Third Bancorp, as arranged by J.P. Morgan
Securities Inc.
The new $80 million credit agreement includes a $20 million term loan and
a revolving credit facility with maximum borrowing up to $60 million. The
terms of the agreement provide for the opportunity to increase the available
borrowings by $25 million, if need arises. The term loan is to be repaid at a
rate of $1 million per quarter beginning on September 30, 2007. Borrowings
under these loans will be at a lower rate than the existing facility and are
subject to fewer financial covenants. Proceeds from this facility will be used
to replace and repay the amounts outstanding under the existing facility that
has maximum borrowings of $64 million.
In addition, Northstar received a commitment from Fifth Third Bank to
provide up to $10 million of credit to finance equipment needs in 2007 through
capital leases. This commitment follows the $5 million equipment lease line
used in 2006 with Fifth Third Bank to finance equipment at Northstar's Chicago
facility to respond to increasing demand on the CH-47 Chinook program.
"These facilities provide Northstar with the flexibility and opportunity
to accelerate capital investment and meet increased working capital needs
necessary to keep pace with a backlog that has grown more than 50 percent in
the last two years. We are delighted to have capacity of up to $115 million
available from these highly regarded international financial institutions,"
said Mark Emery, President and Chief Executive Officer, Northstar Aerospace
Inc.
About JP Morgan Chase Bank N.A.
-------------------------------
JPMorgan Chase &amp; Co. (NYSE: JPM - News) is a leading global financial
services firm with assets of $1.4 trillion and operations in more than 50
countries. The firm is a leader in investment banking, financial services for
consumers, small business and commercial banking, financial transaction
processing, asset and wealth management, and private equity. A component of
the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers
in the United States and many of the world's most prominent corporate,
institutional and government clients under its JPMorgan and Chase brands.
Information about the firm is available at www.jpmorganchase.com.
About Fifth Third Bancorp
-------------------------
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. Operating 153 banking locations throughout
Chicagoland and Northern Indiana, Chicago ranks as the second-largest
affiliate in the Fifth Third network. The Company has $100.7 billion in
assets, operates 19 affiliates with 1,157 full-service Banking Centers,
including 109 Bank Mart locations open seven days a week inside select grocery
stores and 2,103 Jeanie ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois,
Florida, Tennessee, West Virginia, Pennsylvania and Missouri. Fifth Third
operates five main businesses: Commercial Banking, Branch Banking, Consumer
Lending, Investment Advisors and Fifth Third Processing Solutions. Fifth Third
is among the largest money managers in the Midwest and, as of December 31,
2006, has $220 billion in assets under care, of which it managed $34 billion
for individuals, corporations and not-for-profit organizations. Investor
information and press releases can be viewed at www.53.com. Fifth Third's
common stock is traded through the NASDAQ National Global Select Market System
under the symbol "FITB." Member FDIC.
About Northstar Aerospace Inc.
------------------------------
Northstar Aerospace Inc. (www.nsaero.com) is North America's leading
independent manufacturer of flight critical gears and transmissions. Northstar
is a public company (TSX:NAS) with operating subsidiaries in the United States
and Canada. Its principal products include helicopter gears and transmissions,
accessory gearbox assemblies, rotorcraft drive systems and other machined and
fabricated parts. It also provides maintenance, repair and overhaul of
helicopter engines and transmissions. The company's executive offices are
located in Chicago, Illinois. Its plants are located in Chicago; Phoenix,
Arizona; Stroud, Oklahoma; Anderson, Indiana; and Milton and Windsor, Ontario.
%SEDAR: 00002555E